Harbin Electric's Shares Popped: What You Need to Know
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Chinese electric motors manufacturer Harbin Electric (NAS: HRBN) sparked up 10.6% in spiky morning action.
So what: It's downright strange to see Harbin jumping on a day of widespread Chinese bloodshed in the market, but that's what happened today. The stock dropped as much as 10% right before yesterday's closing bell as The Wall Street Journal posted a story about possible Chinese accounting frauds, which makes a lack of finger-pointing today seem like a downright stamp of approval.
Now what: Like Longtop Financial and Sino Clean Energy (NAS: SCEI) , Harbin's management has been the target of more j'accuse actions than I care to remember, alleging things like bogus bank loans and self-serving accounting practices. Not that I particularly trust the equally self-serving no-name firms doing the finger-pointing, but there's a difference between one crazy prophet on the street corner and a slavering horde of critics. And catching Harbin on the upswing has required nearly superhuman timing so far. You'll certainly sleep better at night by staying away from this potentially unholy mess.
Interested in more information about Harbin Electric? Add it to My Watchlist.
At the time this article was published Fool contributor Anders Bylundholds no position in any of the companies discussed here. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool is investors writing for investors.